WazirX, a leading Indian crypto exchange, experienced a significant security breach in the early hours of Thursday, resulting in the withdrawal of over $230 million. This breach affected one of its multisig wallets, leading to substantial user fund losses.
“We’re aware that one of our multisig wallets has experienced a security breach. Our team is actively investigating the incident,” WazirX confirmed in an X post. “To ensure the safety of your assets, INR and crypto withdrawals will be temporarily paused.” The stolen funds account for over 45% of the exchange’s $500 million holdings, as disclosed in a June report.
In light of this incident, Sumit Gupta, founder of CoinDCX, has assured users that their assets remain secure and unaffected. Gupta emphasised that CoinDCX’s wallet security is robust and provides strong defense against potential threats. “In light of the recent WazirX breach, we want to reassure all CoinDCX users that your assets are safe and not impacted in any manner. Our wallet security remains robust,” Gupta stated.
The stolen assets from WazirX included over $100 million worth of Shiba Inu (SHIB) tokens, $52 million in Ether (ETH), $11 million in Matic (MATIC), and $6 million in Pepe (PEPE). Transactional data shows that the exploiter is actively selling the stolen assets using the on-chain exchange Uniswap. The exploiter has yet to sell their ETH holdings and holds over $4.2 million in FLOKI tokens.
WazirX is popular among Indian traders and primarily targets the Indian market. It is one of the few Financial Intelligence Unit (FIU) registered exchanges in the country, allowing it to offer crypto exchange services to Indian citizens. CoinGecko data shows WazirX exchanged at least $2.2 million in volumes in the past 24 hours, led by Tether (USDT) stablecoins and XRP.
The live proof of reserve site of WazirX was down for maintenance at the time of writing. Multisig wallets, which require two or more private keys to authenticate and confirm transactions before they are processed, were involved in the breach.
CoinDCX continues to prioritise the safety and security of its users’ assets, maintaining high standards of protection. Gupta’s reassurance comes as a relief to CoinDCX users amidst the growing challenges in the cryptocurrency space. This incident highlights the importance of robust security measures and vigilant monitoring to protect users’ investments.
In addition to addressing security at the CoinDCX, Sumit Gupta has released a detailed video outlining the measures CoinDCX is taking to protect users’ assets. Gupta emphasised several key aspects of CoinDCX’s security infrastructure:
Cold Wallet Storage: Gupta assured that 100% of customer funds are stored in cold wallets. This method keeps assets offline, making them less vulnerable to hacks and breaches.
ISO 27001 Certification: CoinDCX has achieved ISO 27001 certification for its security management. This international standard demonstrates the exchange’s commitment to stringent security protocols and risk management practices.
Advanced Security Features: CoinDCX employs Multi-Party Computation (MPC), Two-Factor Authentication (2FA), and advanced encryption techniques. These measures ensure that user accounts and transactions are protected with multiple layers of security.
Regular Audits: Gupta highlighted that CoinDCX conducts regular security and compliance audits. These audits help identify potential vulnerabilities and ensure the exchange adheres to high security standards.
Real-Time Proof of Reserves: CoinDCX offers real-time proof of reserves, providing transparency and ensuring that users can verify the exchange’s holdings at any time.
This comprehensive security framework aims to reassure CoinDCX users of the safety of their assets, especially in light of recent incidents like the WazirX hack.
